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A note on decoupling, recoupling and speculative bubble: some empirical evidence for Latin America

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  • Renatas Kizys
  • Christian Pierdzioch

Abstract

The US subprime mortgage crisis has led to increased interest in the decoupling-recoupling hypothesis, according to which the international comovement of financial markets has strengthened since the US subprime mortgage crisis has gathered steam. We study whether the decoupling-recoupling hypothesis holds for news to speculative bubbles in equity markets. For several Latin American countries, we do not find evidence of a recoupling of speculative bubbles.

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  • Renatas Kizys & Christian Pierdzioch, 2013. "A note on decoupling, recoupling and speculative bubble: some empirical evidence for Latin America," Applied Financial Economics, Taylor & Francis Journals, vol. 23(13), pages 1057-1065, July.
    • Handle: RePEc:taf:apfiec:v:23:y:2013:i:13:p:1057-1065
    DOI: 10.1080/09603107.2013.795271
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